Operations and Productivity

Operation and Productivity
Global Company Profile: Hard Rock Cafe
Operations Management at Hard Rock CafeOperations Manager throughout the world are producing products every day to provide for the well-being of society. These products take on a multitude of forms. Hard Rock Cafe produces thousands of complex products every day, to be delivered as the customer ordered them, when customer wants them. Hard Rock does this for over 35 million gusts worldwide every year. Orlando-based Hard Rock Cafe opened its first restaurant in London in 1971, making it over 35 years old and the granddaddy of theme restaurants. Although other theme restaurants have come and gone, Hard Rock is still going strong, with 121 restaurants in more than 40 countries and new restaurants opening each year. Hard Rock made its name with rock music memorabilia, having started when Eric Clapton, a regular customer marked his favorite bar stool by hanging his guitar on the wall in the London Cafe. Now Hard Rock has millions of dollars invested in memorabilia. To keep customers coming back time and again, Hard Rock creates value in the form of good and entertainment. The operations managers at Hard Rock Cafe at Universal Studios in Orlando provide more than 3500 custom products, in this case meals, every day. These products are designed, tested, and then analyzed for cost ingredients, labor requirements, and customer satisfaction. On approval, menu items are put into production and then only if the ingredients are available from qualified suppliers. The production process, from receiving, to cold storage, to grilling or baking or frying, and a dozen other steps, is designed and maintained to yield a quality meal. Operations managers, using the best people they can recruit and train, also prepare effective employee schedules and design efficient layouts. Managers who successfully design and deliver goods and services throughout the world understand operations. Operations management is demanding, challenging, and exciting. WHAT IS OPERATIONS MANAGEMENT?

Production is the creation of goods and services. Operations management (OM) is the set of activities that creates value in the form of goods and services by transforming inputs into outputs. Activities creating goods and services take place in all organizations. In an organization that does not create a tangible good or product, the production function may be less obvious. We often call these activities services. The services may be “hidden” from the public and even from the customer. The product may take forms as the transfer of funds from a savings account to a checking account, the filling of an empty seat on airplane, or education of a student. Regardless of whether the end product is a good or service, the production activities that go on in the organization are often referred to as operations, or operations management. ORGANIZING TO PRODUCE GOODS AND SERVICES

To create goods and services, all organizations perform the function. These functions are the necessary ingredients not only for production but also for organization’s survival. They are: 1. Marketing, which generates the demand, or at least takes the order for a product or service (nothing happen until there is sale) 2. Production/Operations, which creates the product

3. Finance/Accounting, which tracks how well the organization is doing, pays the bills, and collects the money. WHY STUDY OM?
We study OM for 4 reasons: 1. OM is one of the three major functions of any organization, and it is integrally related to all the other business functions. Therefore, we study how people organize themselves for productive enterprise. 2. We study OM because we want to know how goods and services are produced. The production function is the segment of our society that creates products and service we use. 3. We study OM to understand what operations managers do. By understanding what these managers do, you can develop the skills...

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...Allow me to start by saying “The Goal” was truly an enjoyable experience in learning the fundamental concepts of operations management. This was a non-traditional and fun way to gain knowledge. I would have never imagined learning such “operational principles” in an entertaining manner. Bravo Professor Kouvelis for instituting education in creative and informative way. Now, on to the questions at hand…
1. Give me the definitions of throughput, inventory and operational expense given in The Goal. How do they compare with the traditional definitions? Do you find them useful, and why?
In the goal Throughput “is the rate at which the system generates money through sales.” Inventory “is all the money that the system has invested in purchasing things which it intends to sell. “ And Operational expense “is all the money the system spends in order to turn inventory into throughput (sales). The key takeaway is looking at theses 3 measures as components of sales (end goal), not production…which is the traditional definition. It begs the question, “what good is it to produce something and not sell it?” The goal is not to merely produce but to make money. The Goal’s cements the idea by making a case for managers to focus on the end goal (making money) common sense can be applied to operational management.
2. Give me the definition of a bottleneck operation. Develop your own simple example to demonstrate it to me. Describe two or three...

...CHAPTER 1: OPERATIONS AND PRODUCTIVITY
TRUE/FALSE
1. Some of the operations-related activities of Hard Rock Café include designing meals and analyzing them for ingredient cost and labor requirements. True (Global company profile, easy) The production process at Hard Rock Café is limited to meal preparation and serving customers. False (Global company profile, easy) All organizations, including service firms such as banks and hospitals, have a production function. True (What is operations management? moderate) Operations management is the set of activities that create value in the form of goods and services by transforming inputs into outputs. True (What is operations management? easy) An example of a "hidden" production function is money transfers at banks. True (What is operations management? moderate) One reason to study operations management is to learn how people organize themselves for productive enterprise. True (Why study OM, easy) The operations manager performs the management activities of planning, organizing, staffing, leading, and controlling of the OM function. True (What operations managers do, easy) "How much inventory of this item should we have?" is within the critical decision area of managing quality. False (What operations managers do, easy) In order to have a career in operations...

...﻿Productivity is a measure of the efficiency of production. Productivity is a ratio of what is produced to what is required to produce it. Usually this ratio is in the form of an average, expressing the total output divided by the total input. Productivity is a measure of output from a production process, per unit of input.
At the national level, productivity growth raises living standards because more real income improves people's ability to purchase goods and services, enjoy leisure, improve housing and education and contribute to social and environmental programs. Productivity growth is important to the firm because it means that the firm can meet its (perhaps growing) obligations to customers, suppliers, workers, shareholders, and governments (taxes and regulation), and still remain competitive or even improve its competitiveness in the market place.[1]
INTRODUCTION
For years, quality and productivity have been viewed as two important indexes of company performance, especially in manufacturing industries. However, they are always emphasized separately. The main reason that quality and productivity are not emphasized simultaneously is that the objectives of quality management and productivity management are traditionally viewed as contradictory (Deming, 1986; Belcher, 1987; Hart and Hart, 1989; Darst, 1990; Kaydos, 1991; Omachonu and Ross, 1994). Recent...

...﻿Word Count: 2.386
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Since the start of the economic crisis in 2008, all national economies face difficulties, both in the goods and the financial markets. This is also the case of Romania, which started as one of the most promising emerging economies in the Eastern European area. Now the country is struggling to meet budget deficit targets and pay back IMF loans.
Even in these rough conditions, S.C. Marinaden S.R.L. (Limited Liability - the equivalent of the British Ltd.) remains one of the largest furniture manufacturers and retailers in the country’s Northern region. Ever since this company was started 50 years ago, it succeeded in being one of the top players in the field. The company has two manufactory facilities located at the outskirts of Iasi and Suceava (two of the largest cities in the region), which work around the clock to make sure all demand is met. As points of sale, the company uses more than 10 rented spaces in major cities at the moment, each of them being located...

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4.709 Operations Management
Individual Assignment
Lecturer: Mr. Ray Ninow
Bhawana Vohra – ID No. 20140195
Total words: 1869
1. Custom Fabricators Company
(a) The balance of Customer Service and Resource utilization
Customer service is a series of activities designed to enhance the level of customer satisfaction – that is, the feeling that a product or service has met the customer expectation.
Customer Service is defined by three things:
Specification
Timing
Cost
Specification:
Custom Fabricators made control panels for elevators. The product specifications were decided in advance as per the elevators. Over the period of time Custom fabricators had mastered the making of these panels with the help of new technologies.
Timing:
Timely delivery was of high importance as the shipment schedule of elevators was shared in advance with the company. The product was always delivered on time because of the efficiency of the process of making panels.
Cost:
The quality of panels was good enough to charge the suitable price. Over the period of time the company has been able to charge a good price from its customers because they were able to satisfy them.
Resource Utilization by strategically eliminating operational inefficiencies. Resource utilization is the use of a resource in such a way that increases through output. The aim is to use these assets efficiently so as...

...Q1) To understand a company’s operations the following areas should be primarily researched:
1) Identify the position of the company on the Product-Process matrix:
The product-process matrix is a tool for analysing the relationship between the product life cycle and the technological life cycle. A company can be characterized as occupying a particular region on the matrix. Identify where the company lies on the matrix: job shop, batch, line or continuous.
In case of a company such as coca cola the production process can be divided into two parts:
i) Pre bottling
ii) Post bottling
During the pre-bottling production, the company falls into the Continuous manufacturing involves lot-less production wherein the product flows continuously rather than being divided. A basic material is passed through successive operations (i.e., refining or processing) and eventually emerges as one or more products. This process is used to produce highly standardized outputs in extremely large volumes.
The post bottling production falls into the
2) Supply Chain Management of the company:
Supply Chain Management is the implementation of cross-functional relationships with key customers and suppliers in that network. It is a new business model necessary for an organization's success and every function needs to be involved.
By understanding the supply chain management processes and how they should be implemented, you will better...